Native ads will account for more than half (52 per cent) of the display media bought across Europe by 2020, according to a report.
The study from Yahoo and Enders found that native ad spend across the region will jump 2.6 times over the next five years, going from €5.2bn in 2015 to €13.2bn by 2020. This will represent more than half (52 per cent) of total display ad spend projected in 2020.
As display media’s share of the media mix dwindles, mobile and social are becoming more influential, particularly when it comes to the mass adoption of native ads in the coming years. Mobile native spend will reach €8.8bn in 2020, a notable rise on the €1.5bn in 2015, while native ad spend on social networks will hit €6.3bn in 2020, up from €2bn in 2015.
“For us mobile really does equate to mobile advertising,” said Nick Hugh, vice president of Yahoo’s EMEA business. He pointed to the UK as a microcosm for this trend, which the company hopes reduces its reliance on cheaper and less effective traditional display formats fairly quickly in order to win a larger slice of advertising budgets.
UK native advertising is projected to climb to £2.8bn in 2020, rising from £1.2bn 2015. In Germany, this figure is set to hit €1.7bn in the period (up from €545m) and in France it is tipped to reach €824m (up from €2.4bn).
“The explosive rise of native advertising is a huge opportunity for advertisers, because it’s a creative and measurable format which works effectively on smaller screens. It’s a scalable solution for publishers and importantly provides a contextual and relevant experience for consumers. Native advertising is a powerful solution for all sides of the equation.”
As part of its turnaround plan, Yahoo has bet heavily on native ads, with its Gemini ad platform (which combines search and native) being used to spread sponsored posts throughout its assorted sites as well as app providers. The company’s native display revenue across all devices hit around $160m in the three months to December, propelling its display ad offering by 8 per cent year-on-year in the same period.
Joseph Evans, digital media analyst at Enders Analysis, added: “Native advertising looks like a rare win-win for the industry: more effective for advertisers, more valuable for publishers and more acceptable for users. Its suitability for mobile, social and video contexts means that growth in native will contribute the large bulk of increased digital display spend.”